An accounts payable audit is a straightforward way of trawling your accounts and finding errors over the previous few years that have resulted in you being owed money. One of the worst of the issues it is good at uncovering is that of duplicate payments: where someone raises the same payment details twice, whether by accident or design, meaning that you end up out of pocket. Recovery audit software allows you to locate all the mistaken transactions and take steps to reclaim the money you are owed.
Most companies are as careful as possible with their accounts. After all, keeping accurate accounts is not only a legal and tax requirement: it is sound business sense if you are to have a good picture of where you stand. However, itâs equally true that no one is beyond fault and mistakes will always happen. This may not even be down to you. If a supplier or customer makes a request for a payment, you may not be aware of any errors it has. Duplicate payments are the most common of these. Itâs a particular problem if itâs a regular payment â perhaps a monthly invoice from a supplier. Because it is regular and expected, if another submission is made then you might not recognise it for what it is. Especially if you have more than one person processing invoices, itâs easy to miss. Thatâs going to cost you.Â
Itâs not just duplicates. There are any number of ways that mistakes can creep into invoices. With a dozen or so fields to fill out on the average invoice, itâs not surprising that around one in every thousand payments (0.1%) is a mistake. For high-volume, low transaction value businesses, that can be a real problem. If youâre just surviving, this reality can erode your profit margin and make the difference between going under and staying afloat.
An accounts payable audit should stop the problems in their tracks. Duplicate payments will become a thing of the past, putting you in a better position to go forwards and use the money that your business generates for growth â not paying unnecessary bills. Better than that, recovery audit software means you can contact the suppliers and other parties who have overcharged you in the past, and take steps to reclaim the money that you are owed. This means that purchasing the recovery software can pay for itself the first time you run it, allowing you to reclaim up to six years of past overpayments: a welcome extra for anyone.
Please visit http://www.fiscaltechnologies.com/ for more.